An OPC or One Person Company is a business format where a single person owns the company. There is no more than a single director or more than a single member. Being a single-handled company, an OPC is easy to manage. If you are an entrepreneur who seeks singular success, you can register as an OPC in India.
The definition of a One Person Company is explained in Sub Section 62 of Section 3 of the Companies Act, 2013, which states: “One Person Company means a company which features only one Member.” Therefore, unlike a Private Limited Company, this single company registration of a single owner doesn’t need a minimum of two directors. However, like a private limited company, the online One Person Company Registration in India does provide you with Limited Liability.
The process of company registration in India is simple and includes fewer steps. Apply for DSC and DIN, then send the name of the company for approval, collect all the documents, and file the form on the MCA website if the authority found the application and documents correct, then it provides you a status of One Person Company.
Types of OPC You Can Form
As per the companies act 2013, there are five types of OPCs you can form:
Benefits of a One Person Company registration
After the online registration of One Person Company in India, there are the following benefits that can be enjoyed:
Separate Legal Entity
An OPC Company has a separate legal entity from its members. The separate legal entity provides protection to a single individual who is incorporated in the business. The liability of the members is limited to their shares and they are not personally liable for any loss of the company. So, the creditors can sue the OPC and not the member or a director. As the business entity is a company, the entrepreneurs have their assets protected from the failings of the company.
Less Number of Compliances
For One Person Company, the number of compliances is less. They do not have to prepare the cash flow statement and there is no need for a company secretary to sign the books of accounts and annual returns to be signed. This should be signed only by the director.
Incorporating an OPC is easier as compared to other company formations. Because there is only one nominee or member is required for the incorporation. This member can be a director also. The minimum authorised capital required is Rs. 1 lakh but there is no cap on the minimum paid-up capital required.
Easy to Manage Affairs
As the OPC is made by a single person, all its affairs are easy to manage. So, it is easy to make decisions, and the process becomes quick. Every ordinary and special resolution can be passed easily by just one sign of a sole member. Because of this no conflict and delay happened in company activities.
Even if there is one member in the company, the OPC has a feature of perpetual succession. A single person should be appointed as a nominee while incorporating a company. In case of a member’s death, the nominee will run the company in the place of the member.
Eligibility Criteria for One Person Company Registration in India
Before you can register OPC (One-Person Company), there are some requirements that you need to keep an eye out for. Following are the OPC registration requirements that you need to know:
Compliances of One Person Company
Documents required for One Person Company Registration in India
The following are the documents required for One Person Company (OPC) Registration:
Following are the documents required for One Person Company (OPC) Registration
Address Proof like,
Passport Size Photo
For Registered Office
Other documents required to submit by a company are as follows:
Following is the procedure for incorporating a One-Person Company in India:
Our Assistance in registering a One Person Company in India
At Registrationwala, we provide end-to-end solutions for the registration of a One Person Company. Our services include:
We are a team of leading business experts in India.Through our OPC incorporation process, your online OPC company registration in Delhi can be started on time, and the dream of your solo company can be realized.
Q. How does one register for a One Person Company incorporation in India?
A. Following is the procedure for incorporation of a One Person Company in India
1. Choose a unique name
2. Choose a nominee for the One Person Company formation
3. Reserve the name using the RUN application
4. Obtain the DSC and DIN of the director
5. Draft MOA and AOA
6. Submit the online application
7. Assessment of the application by MCA